Photo/Shetuwang

Dec. 3 (NBD) -- Fashion retailer Esprit Holdings Limited (00330.HK) has launched a joint venture with Mulsanne Group Holding Limited (01817.HK) to take over the operation of its products, including the Esprit brand, on the Chinese mainland, the company said in a filing on Sunday. 

The deal was made through Esprit's indirect wholly-owned subsidiary Million Success Resources Limited. Million Success will hold 40 percent of the equity interest in the JV, while Mulsanne will own the rest 60 percent. Principally engaging in the operation of retail and online platforms for menswear, Mulsanne operates more than 2,000 stores across the Chinese mainland. 

As part of the transition expected to be completed by June 30, 2020, Esprit and its subsidiaries will close down some shops or transfer the assets of the remaining shops in China to the JV. The new entity is still subject to approvals from the relevant anti-trust authorities.

Esprit has always attached great importance to Asia Pacific markets including China, but the performance was not that satisfactory due to the rise of local fast fashion brands and impact of e-commerce platforms. 

In the first quarter of fiscal year 2020 ended on September 30, 2019, the company's revenue from Asia Pacific markets slumped by 44.4 percent from a year ago. 

For the fiscal year 2019 ended on June 30, 2019, Asia Pacific markets contributed only 9.5 percent of Esprit's worldwide revenue. In China, wholesale revenue for the year dropped 55.7 percent year over year.

Email: lansuying@nbd.com.cn